Apr 14 2012
|more articles from|
Debtors allowed to transfer loan to other banks
Central Bank sets Dh10,000 fee for transfer as part of new personal loan law
The rule followed last year's enforcement of a new personal lending law which set the maximum loan at 20 times the applicant's monthly salary.
"The Central Bank allowed debtors to transfer their loans to another bank or finance company for an interest rate of one per cent of the remaining loan or Dh10,000, whichever is less," Emirat Alyoum daily said.
The paper said the personal loan law, which was enforced in mid 2011, did not include the transfer rule, adding that this has resulted in many debtors being unable to transfer their loan as it exceeded the ceiling.
© Emirates 24|7 2012
© Copyright Zawya. All Rights Reserved.